Domestic prominent influential persons (DPIPs) aren’t automatically seen as high risk. However, the FIC Act requires a high level of due diligence to assess the risk associated with the prospective relationship with the DPIP, who include the following individuals:
Additional information may be required in order for Sanlam to determine and manage the risk associated with the relationship with a DPIP. This may include:
- Source of wealth
- Nature and source of income.
Where a prospective relationship with a DPIP is considered high risk, senior management approval is required, which could affect the time needed to finalise a transaction.
This snippet is part of a series. If you missed the previous instalments, read more here:
- Part 1: Demystifying PDD – one step at a time
- Part 2: Simplifying FIC Amendment Act requirements
- Part 3: When clients change their banking details, additional info may be requested
- Part 4: PDD requirements when your client is a minor
For more on the FIC Amendment Act, click here.